Donald Thompson: DEI is evolving, not ending: How top companies are rebranding inclusion

DEI isn’t dead; top companies are just calling it something different.

Recent headlines and attention-grabbing statements from anti-DEI activists would have you believe that corporate America is no longer promoting diversity, equity and inclusion in the workplace. If you’re paying close attention, however, most successful companies aren’t backing away from their DEI goals. They are merely adjusting their strategies and their messaging.

Future-focused leaders understand that engaged employees are a competitive advantage, one that is amplified when people feel psychologically safe. Over the last four years, The Diversity Movement (TDM) has helped hundreds of clients and thousands of individuals harness the power of inclusive communication, empathetic leadership and workplace well-being. Can those actions be described as diversity, equity and inclusion strategies? Sure. But they are also proven methods to foster high-performing teams, insightful leaders and loyal employees.

As my team and I worked to improve corporate culture through DEI, vocal critics generated distracting backlash around these programs, causing some executives to shut them down to avoid public criticism and the ensuing reputational risks. At other organizations, senior leaders decided instead to adjust their culture-building (a.k.a. DEI) strategies to align with business goals, because they were seeing measurable bottom-line results. The terminology might be different, but these companies have integrated DEI into their systems and processes, as well as their mission and values.

Toyota doubles down on belonging and diversity of thought

Earlier this year, Toyota announced it will no longer participate in the Human Rights Campaign's Corporate Equality Index or other external surveys that track DEI benchmarks. At the same time, the carmaker affirmed its continued investment in its Business Partnering Groups (BPGs) and other programs that foster an “inclusive environment where diversity of thought can flourish.” Other programs getting the green light are initiatives that align closely with business objectives: STEM education and workplace readiness.

When asked about its DEI strategy, Toyota responded: “Since the inception of our company, respect for people and continuous improvement have been at the core of who we are and have helped our business succeed for nearly 70 years. Our goal is to create an environment that fosters innovation and success and where everyone feels like they are respected and belong.”

JPMorgan Chase attributes higher financial returns to inclusive culture

JPMorgan Chase CEO Jamie Dimon has publicly linked the company’s DEI initiatives to its continued financial success. After a ‘spectacular’ financial performance in 2023, JPMorgan Chase was recently named The World’s Best Investment Bank. In his 2023 letter to shareholders, Dimon writes, “[DEI] initiatives make us a more inclusive company and lead to more innovation, smarter decisions and better financial results for us and for the economy overall.”

The company has 10 Business Resource Groups dedicated to the professional advancement of Black employees, women, LGBTQ+ employees, members of the military and veterans, and others. More than 50% of the workforce participates in these groups. They also extend this commitment to their customers; the company has seven Centers of Excellence devoted to creating more inclusive products and services for clients, as well as “[accelerating] economic empowerment.”

Commitment to inclusion puts BAYADA among “America’s Greatest Workplaces”

BAYADA, a longtime TDM partner, has consistently aligned its culture-building initiatives with business goals and its company mission. Inclusive language training helps increase collaboration and improve communication throughout the home healthcare company’s large, culturally diverse and geographically dispersed workforce. BAYADA’s six employee resource councils (ERCs) foster an inclusive environment and provide vital perspectives into the communities the company serves. These and other human-centered initiatives are more than feel-good programs; they give BAYADA employees the tools to be successful at their jobs.

The results of BAYADA’s commitment to inclusion and belonging are overwhelming. Its numerous accolades tell a powerful story that helps the company attract and retain top talent. In 2023 and 2024, BAYADA was named as one of America’s “Greatest Workplaces for Diversity” and “Greatest Workplaces for Women” by Newsweek. In 2023, Newsweek also named the company as one of “America’s Greatest Workplaces” and one of “America’s Greatest Workplaces for Parents & Families.” Forbes also ranked BAYDA as among the “Best Employers for Veterans” in 2023.

Shift the messaging, but keep the financial and workforce benefits

These three companies are investing in inclusive strategies that foster diversity, because they make a difference for their organization’s productivity and performance. And they are not outliers. Companies with the highest racial, ethnic and gender representation are 39 percent more likely to financially outperform, according to a 2023 McKinsey study of more than 1,200 firms worldwide. Ratings agency Moody’s found that companies with higher ratings tend to have greater racial diversity on their boards and in their executive leadership. Investing in DEI also helps companies adapt to change and be more innovative, according to a report in the Harvard Business Review.

Today’s divisive business climate and the continuing attacks on DEI mean large companies must walk a fine line so they don’t alienate their customers and shareholders, while still creating an inclusive and welcoming environment where employees can do their best work. But leaders can’t afford to disregard the skeptics entirely, because their critical feedback can highlight diversity programs that don’t provide a measurable return on investment. To balance these competing interests, senior executives must align their culture-building efforts with organizational values and business goals.

Throughout the past year, my focus has been on keeping cultural transformation and employee engagement at the forefront of executive conversations. While I have long brought a diversity lens to my business dealings, I also bring a “goodness lens.” I believe that senior leaders want to do right by their people, and inclusion-forward policies are an opportunity to achieve both employee well-being and financial success. I have seen firsthand that organizations committed to empathetic leadership, inclusive communication and human-centric policies have benefited across talent management, innovation and profitability. These gains have occurred despite the attacks on DEI, misleading media reports and polarizing politics.

About the Author

Donald Thompson, EY Entrepreneur Of The Year® 2023 SE Award-winner, founded The Diversity Movement, a Workplace Options Company, to fundamentally transform the modern workplace through diversity-led culture change. Recognized by Inc., Fast Company and Forbes, Thompson is author of Underestimated: A CEO’s Unlikely Path to Success, hosts the podcast “High Octane Leadership in an Empathetic World” and has published widely on leadership and the executive mindset. His new book is The Inclusive Leadership Handbook: Balancing People and Performance for Sustainable Growth, co-authored with Kurt Merriweather, Vice President of Marketing and Innovation at The Diversity Movement. Follow Thompson on LinkedIn for updates on news, events and his podcast, or contact him at info@donaldthompson.com for executive coaching, speaking engagements or DEI-related content.